“Most of the attention is focused on the highly visible hyper scale ‘cloud’ data centers like Google’s and Facebook’s, but they already are very efficient and represent less than 5 percent of U.S. data center electricity consumption,” said Pierre Delforge, NRDC’s director of high-tech energy efficiency. “Our small, medium, corporate, and multi-tenant data centers are still squandering huge amounts of energy.”

Developed in partnership with Anthesis, “Scaling Up Energy Efficiency Across the Data Center Industry: Evaluating Key Drivers and Barriers” notes that while huge cloud server farms have made significant efficiency improvements, progress has been much slower and uneven across the nearly 3 million other data centers in businesses and organizations that house 95 percent of servers across the country, costing them billions of dollars and kilowatt hours. In fact, up to one-third of servers are no longer needed but are still consuming large amounts of electricity while many others are grossly underutilized, operating at no more than18 percent of capacity, the report said.

On the whole, U.S. data centers consumed an estimated 91 billion kilowatt-hours of electricity in 2013 — enough to power all of New York City’s households twice over and growing. And data center power needs are estimated to grow significantly. By 2020, annual data center energy consumption is expected to reach 140 billion kilowatt hours in the nation. This could cost business $13 billion annually for electricity equivalent to that generated by 50 large coal-fired power plants emitting nearly 150 million tons of carbon pollution.

Although the full extent of energy waste is unknown due to a lack of consistent metrics, the report estimates that if just half of the potential savings from cost-effective energy efficiency best practices were realized, electricity use could be cut by 40 percent. In 2014, that would equal $3.8 billion in savings for businesses and cut 39 billion kilowatt-hours of electricity, equivalent to the electricity generated by 34 large, coal-fired power plants and enough to power all of Michigan’s homes for a year.

“New practices and policies are needed to accelerate the pace and scale of the adoption of energy efficiency best-practices throughout the industry,” Delforge said. “Nearly one-third of all leased data center space will come up for renewal over the next year, so the time to act is now.”

Key findings from the NRDC-Anthesis report included up to 30 percent of servers are no longer needed because projects have ended or business processes changed, but are still plugged in and consuming electricity, and much of the energy consumed by U.S. data centers powers servers operating at 12 to 18 percent of capacity. Even sitting virtually idle, servers use significant amounts of power 24/7.

The report also found that in 80 percent of organizations, the department responsible for data center management is separate from the one paying the electric bills. This split incentive reduces the likelihood of implementation of common-sense efficiency measures.

The report makes a number of recommendations, including: aligning incentives for decision makers, developing simple metrics for measuring server utilization, public disclosure of data center energy and carbon performance, and establishing green leases for multi-tenant data centers.

Publication date: 9/29/2014

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